Protection Planning

Life insurance for a Stay-At-Home Parent

jim Financial Planning, Life Insurance, Life Insurance Planning, Protection Planning , , ,
life insurance for a stay-at-home parent

Below is a video from Denver’s 9News channel discussing the need of life insurance for a stay-at-home parent.

Great interview on a topic that is often discussed with our clients.  I do agree there is a significant need to provide coverage on both parents, working and non-working.  Obviously, the family wants to insure the bread winner’s full human life value and income potential.  But what is the value of a parent that does not have a W-2 job, works on a contract basis, part-time, or not at all?  Just how much is a stay-at-home parent worth?  My wife and I both work, so we know the cost of full-time child care nowadays, and it’s not cheap.  Not to mention, all the other jobs around the house that would need to be taken care of if the stay-at-home parent unexpectedly passed away; laundry, dishes, making lunches, rides to/from school, helping kids with homework, making dinner, cleaning the house, transporting the family to after school activities, outside yard work, keeping the house in order, paying bills, mid-day doctor appointments, grocery shopping, and the list goes on.

I disagree with the estimated amount discussed in the conversation.  This amount will vary based on each family’s unique situation.  Maybe the amount is an average based on this advisor’s experience, but the exact amount is hard to provide with a blanket “rule of thumb” amount.  The advisor in the video does provide the correct advice for the consumer to discuss this topic with a professional.  These questions and more are discussed in the video below.  We are here to help you.  If you would like your current coverage reviewed or if you think it’s time as a stay-at-home parent to get life insurance coverage, give us a call today.

WATCH VIDEO BELOW

https://www.9news.com/video/money/heres-why-its-important-that-you-get-life-insurance/73-8118949

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Should I Buy Life Insurance?

jim Life Insurance, Life Insurance Planning, Protection Planning , , ,
should i buy life insurance erie co

I learned long ago there are 2 main reasons you should buy life insurance:

1) You love someone, or

2) You owe someone.  

Straightforward right, you love someone such as your wife, spouse, partner, kids, I even include charity organizations here if you want to leave a legacy.  The flip side, you owe someone.  Maybe you have debts that need to be paid and the responsible “you” doesn’t want to leave that mess to your family so you take a policy out to cover all your debts. 

We will look at a couple examples to put this into a real life perspective.  In our quick examples we have Person A and Person B.  Person A is married with 3 young kids, Person A is also the family breadwinner, and owns a home in the suburbs, but still carries the debt on house mortgage.  Person B is single, no dependents, no intention of having a family or dependents in the near future, rents a condo in a downtown neighborhood, and has no intention of leaving a legacy gift to any person or charity.

For Person A, there is a spouse and children dependent on their income, and lifestyle to support.  Life insurance is a simple solution in the event of Person A’s premature death.  Person B on the other hand, is not an ideal candidate to secure a life insurance policy at this time.  There are no dependents in the picture, no debts to pay, and no gifting intentions.  

With the different options and types of policies available in the marketplace you have many options to choose from that can be customized to your situation.  Life insurance is not a one size fits all program.  If that is what you have been told by a life insurance salesman I recommend you contact us and have a more in-depth conversation about your life insurance planning.  The policies today cover the most basic needs, to the most sophisticated situations, as well as, programs for business owners. If you don’t have a policy and think you are in the same boat as Person A, it’s time to get your life insurance coverage in order, schedule a meeting today or at least reviewed to make sure you have the coverage you want.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.